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The Korea Herald
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THE INVESTOR
March 29, 2024

Automobiles

Kia to finalize first Indian plant in Q2: report

  • PUBLISHED :March 10, 2017 - 15:47
  • UPDATED :March 10, 2017 - 16:25
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[THE INVESTOR] Kia Motors, the nation’s No.2 automaker, said it will finalize the location of its production facility in India in the second quarter, according to local media reports on March 10.

“The land selection process for the Indian plant has been somewhat delayed as Donald Trump, who pledged to impose high tariff on Mexican-made cars, became the new president and we had to deal with (the situation),” Kia Motors Vice Chairman Lee Hyoung-keun said in an interview with the Seoul Economic Daily at the ongoing Geneva Auto Show. “The Indian plant can no longer be delayed. We will decide by the second quarter.”


Hyundai Motor Group Chairman Chung Mong-koo visits Hyundai Motor’s plant in Chennai, India.



Lee said the automaker is in final talks to choose between two potential sites for Kia’s new assembly plant.

Earlier reports have claimed Kia Motors will most likely build the new plant in Andhra Pradesh state, given its proximity to Tamil Nadu state, where Kia’s bigger corporate cousin Hyundai Motor’s two plants are located.

Two western states in India, Maharashtra and Gujarat, are also being considered, according to industry watchers.

“I cannot disclose the location as the negotiation is still underway, but it’s not the Tamil Nadu state,” Lee said.

The carmaker has long been seeking to make inroads in India to tap into one of the fast-growing auto markets in the world. Market watchers expect India’s passenger vehicle market growth to break into double digits this year. While Kia’s bigger affiliate Hyundai has a strong presence in the country since it entered in 1996, Kia is still unknown in the Indian market.

According to sources, Kia’s India plant will roll out 300,000 units annually, focusing on small cars such as Picanto and Rio. It seeks to begin production in 2019.

If the Indian plant is confirmed, it would be Kia’s fifth overseas plant after the US, China, Slovakia and Mexico.

By Ahn Sung-mi (sahn@heraldcorp.com)



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